◆… Examples of changes before and after switching to the score system. Image = courtesy of the Financial Services Commission
Starting from the new year, the government introduced a credit score system that only calculates credit scores rather than calculating credit ratings when evaluating personal credit. The credit score ranges from 1 to 1000.
The Financial Services Commission announced that it has implemented a pilot application to minimize financial consumer discomfort and market confusion, and that it has undergone a revision of related laws in October of last year, and has changed the entire financial sector to a credit score system from January 1 of this year.
Most financial companies used credit ratings provided by personal credit bureaus (CB companies) for their credit strategies, but in the future, CB companies will only provide credit scores, and financial companies will evaluate their own credit risk by considering risk strategies, etc. Conduct.
The Financial Services Commission explained that financial consumers will be able to easily manage their own creditworthiness by using credit scores, cumulative rankings, and customized credit management tips provided by CB companies.
In addition, it was analyzed that the introduction of detailed loan screening criteria by financial companies would not uniformly reject loans according to credit ratings, and would improve financial accessibility of low-credit financial consumers.
The Financial Services Commission announced that the credit rating standards related to card issuance and support for low-income financial products will also be changed to the individual credit rating standards.
An official from the Financial Services Commission said, “We will closely monitor the status of the credit score system conversion and support the stable settlement of the credit score system.” “Financial companies following the conversion of the score system, such as operating a quick response team in cooperation with the Financial Supervisory Service, CB companies, and associations , I will immediately respond and support the occurrence of difficulties such as financial consumers.”
Seilbo Cho / Reporter Lee Min-jae [email protected]
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